Shane Oliver discusses the recent fall in China’s share market and its impact on Australia.
The key points are as follows:
· Just as the rise in Chinese shares had little economic impact it’s hard to see the pullback having a significant economic impact either.
· Chinese economic growth is likely to remain “around 7%” with monetary and fiscal easing helping.
· The volatility in Chinese shares represents a necessary correction. Large cap shares are not expensive.
· The main dampener on commodity prices – and Australia’s terms of trade – is not China, but supply.
To see the full article click here: China sharemarket – OI #24 2015